India to grow 6.9% this year: World Bank
INDIA’S economy is expected to grow 6.9 per cent this fiscal year, the World Bank said on Tuesday (Dec 6), adding that it is well-positioned to tackle global headwinds.
Asia’s fourth-largest economy expanded 6.3 per cent from July to September. The Indian government last week estimated that gross domestic product growth for the full year would be between 6.8 per cent and 7 per cent.
The World Bank had earlier forecast growth of 6.5 per cent for India this year. While upping its call, the international financial institution also trimmed its expectation for next year to 6.6 per cent, from 7 per cent earlier.
India, like its global peers, has been plagued by a rise in commodity prices and tightening monetary policy by central banks worldwide.
But the World Bank was confident that the global slowdown would have a much lower impact on India than other emerging economies.
World Bank economist Dhruv Sharma said the institution had “no concerns about India’s debt sustainability at this stage”. He added that India’s public debt had declined.
The World Bank expected average retail inflation of 7.1 per cent in India this year. It warned that the fall in commodity prices could dampen inflationary pressures.
India’s annual retail inflation eased to a three-month low of 6.8 per cent in October. However, some economists believed it might take up to two years before the rate eases to 4 per cent, which is the middle level of the Reserve Bank of India’s target. REUTERS
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